An Owner Invests $20 000 in Her New Business by Depositing

question 53

Multiple Choice

An owner invests $20 000 in her new business by depositing the cash in the business bank account.Which account is debited?

• A)Accounts payable
• B)Cash
• C)Accounts receivable
• D)Capital

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Definitions:

Leveraged Buyouts

The purchase of one company financed largely through debt to cover the acquisition expenses.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly entitlements to dividends.

Takeover Bid

An offer made by an individual or a company to acquire a controlling stake in another company by buying its shares at a specified price.

Wealth Gains

The increase in the financial assets and resources owned by individuals, companies, or countries, indicating a sign of financial health and prosperity.